Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please give explanation bill buys a new john d

PLEASE GIVE EXPLANATION Bill buys a new John Deere riding lawn...

90.2K

Verified Solution

Question

Accounting

PLEASE GIVE EXPLANATION

Bill buys a new John Deere riding lawn mower for $10,000 for personal use. Bill signs a promissory note for $10,000 payable to the order of "Deere & Co." and signs a security agreement covering the lawn mower. Deere and Co. does not file a financing statement. Is the security interest perfected?

Answers:

A.

Yes, because the security interest was perfected under the garage sale rule.

B.

Yes, because this was a purchase money security interest which was automatically perfected.

C.

No, because the lawn mower was a consumer good.

D.

No, because a security interest can only be perfected by the filing of a financing statement or taking possession of the secured property.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students